The Greenbrier Companies (GBX) Secures $300M Railcar ABS Financing to Grow Leasing Business

The Greenbrier Companies, Inc. (NYSE:GBX) is one of the best railroad stocks to buy according to analysts. On February 4, Greenbrier Companies, Inc. (NYSE:GBX) completed a $300 million railcar asset-backed securities (ABS) offering through GBX Leasing 2022-1 LLC. GBX Leasing is the company’s indirect wholly-owned special purpose subsidiary. The company issued Series 2026-1 Class A and B Notes to secure long-term financing for its leasing business.

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The Notes carry a blended interest rate of 5.2% and feature a 2.5-year call provision. They also have weighted average lives of about 6.7 years for the Class A Notes and seven years for the Class B Notes. According to the company, the securities received ratings of “AA” and “A” from S&P Global Ratings.

The company detailed that the ABS issuance is secured by railcars and associated operating leases from its leasing fleet. This fleet consists of over 17,000 railcars originating primarily from the company’s manufacturing operations.

Although the securitization will be consolidated on Greenbrier’s balance sheet for accounting purposes, the debt is non-recourse to the parent company. Put simply, Greenbrier is not liable for repayment beyond the pledged collateral. Proceeds from the offering will support Greenbrier’s leasing business and recurring revenue stream.

Lorie L. Tekorius, Greenbrier’s CEO and President, noted that the strong investor demand signals confidence in the durability of the company’s manufacturing platform. The enthusiasm also aligns with the company’s disciplined long‑term strategy to grow the leasing business, Tekorius said.

The Greenbrier Companies, Inc. (NYSE:GBX) is an American transportation manufacturing corporation. It designs, builds, refurbishes, and leases freight railcars. This includes tank cars, boxcars, gondolas, and intermodal equipment, with operations across North America, South America, Europe, and parts of Asia.

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